What is the Incentive for using Green Energy?
In 2008 The UK government launched a renewable energy blueprint outlining plans for a wide-reaching package of financial incentives and pledging to remove many of the technical and planning barriers that routinely dog renewable energy projects.
Speaking at the launch of the new strategy, which sets out how the UK plans to meet its target of generating 15 per cent of energy from renewable sources by 2020, Prime Minister Gordon Brown said that the "green revolution" would result in a tenfold increase in the UK's current renewable energy capacity.
Business Secretary John Hutton added that such a large-scale increase in renewables would not only help cut UK carbon emissions by 20 million tonnes but would also bolster UK competitiveness and lead to the creation of 160,000 new jobs.
Reducing energy demand is important for many reasons, including cost-savings for households and businesses, reducing greenhouse emissions, and contributing to the security of supply.
Financial Incentives
The current financial incentive to produce renewable electricity comes from the Renewables Obligation, by which electricity suppliers must obtain a specified and increasing proportion of their electricity from renewable sources.
Since it was introduced in 2002, the RO has increased the level of RO-eligible renewable generation in the UK from less than 2% in 2001 to around 4.4% in 2006. Under measures set out in the Energy Bill, it is estimated that the RO will lead to around 14% of our electricity being generated from renewable sources by 2015-20.
UK Renewable Energy Strategy
The UK Renewable Energy Strategy from The Department of Energy and Climate Change (DECC) outlines measures and Incentives for the use of renewable Energy including the following proposals;
● extending and raising the level of the Renewables Obligation to encourage up to 30-35% of our electricity to come from renewable sources by 2020;
● introducing a new financial incentive mechanism to encourage a very large increase in renewable heat;
● delivering more effective financial support for small-scale heat and electricity technologies in homes and buildings;
● helping the planning system to deliver, by agreeing a clear deployment strategy at regional level similar to the approach established for housing;
● ensuring appropriate incentives for new electricity grid infrastructure and removing grid access as a barrier to renewable deployment;
● exploiting the full potential of energy from waste, by discouraging the landfilling of biomass as far as is practical;
● requiring all biofuels to meet strict sustainability criteria, to limit adverse
impacts on food prices, or other social and environmental concerns;
● promoting the development of new renewable technologies, through effective support particularly where the UK has the potential to be a market leader;
● maximising the benefits for UK business and jobs, by providing a clear long-term policy framework, working with Regional Development Agencies to tackle key blockages, considering support for specific technologies, and addressing skills shortages.
For the Full Renewable Energy Strategy Document from The Department of Energy and Climate Change (DECC) Please Click here.
Source: Department of Energy and Climate Change
